A report by Lord Ouseley on the future of race relations in Bradford, which is due to be published later this week, has been leaked revealing the town to be dogged by race problems.

The leaks come as the town was hit by a third night of distrubances and show commuinities isolated along racial lines and segregated schools. The report compiled by an 11-strong panel chaired by Sir Herman Ouseley, former chief of the Comission for Racial Equality, describes Bradford as the "ultimate challenge in race relations in Britain" and was commissioned by Bradford council.

"The key concern is that relations between different cultural communities should be improving, but instead they are deteriorating. There are signs that communities are fragmenting along racial, cultural and faith lines," the report will say.